Employment Challenges for Foreign-Born Workers in the US Under the Trump Administration

Strategic Insights -

Foreign-born workers in the US are experiencing significant employment difficulties, primarily attributed to the immigration policies enforced by the Trump administration. The decline in foreign-born workers in the US labor force is a concerning trend, with a peak drop of 1.5 million in the number of foreign workers since March 2025, according to a National Foundation for American Policy (NFAP) analysis of government data. The job market in the US is showing significant weakness, with a prolonged employment downturn posing a risk to the economy and potentially leading to a recession.

Key Takeaways:

  • The number of foreign-born workers in the US labor force declined by 1.1 million since the start of the Trump administration in January 2025, with a sharp drop of 1.5 million from the peak of March 2025, according to NFAP analysis.
  • The average annual growth in the foreign-born labor force from 2014 to 2024 was 6,52,000 a year, indicating a significant decline in the second half of 2025 through 2026, as per the report.
  • The unemployment rate for foreign-born workers in the United States was 4.2 percent in 2024, up from 3.6 percent in 2023, indicating a significant increase in unemployment among foreign-born workers.
  • H-1B visa holders, who are foreign-born hired by US firms, face a 60-day grace period rule under the H-1B visa program, but are required to depart the United States within 60 days or when their authorized validity period ends, whichever is shorter.
  • The US job market is showing significant weakness, with a prolonged employment downturn posing a risk to the economy and potentially leading to a recession, with the unemployment rate rising to 4.3% in August, a nearly four-year high.
  • The tech industry is continuing its trend of substantial layoffs, with over 150,000 job cuts across 549 companies in 2024 and early 2025 already witnessing more than 22,000 affected workers.

Statistics:

  • The number of foreign-born workers in the US labor force declined by 1.1 million since January 2025, with a peak drop of 1.5 million since March 2025, according to NFAP analysis.
  • The average annual growth in the foreign-born labor force from 2014 to 2024 was 6,52,000 a year.
  • The unemployment rate for foreign-born workers in the United States was 4.2 percent in 2024, up from 3.6 percent in 2023.
  • Job openings in the US slowed down in July, with approximately 7.18 million job openings, marking the second occurrence below the 7.2 million threshold since late 2020.
  • New job creation is at alarmingly low levels, with preliminary data from the Bureau of Labor Statistics indicating a downward adjustment of 911,000 from initial estimates in the nonfarm payrolls data for the year preceding March 2025.

Sources:

  • Bureau of Labor Statistics household survey
  • National Foundation for American Policy (NFAP) analysis of government data
  • Center for American Progress analysis of government labor data
  • Bureau of Labor Statistics
  • Contify.com